Breckenridge Real Estate Market Conditions - Keeping a Close Eye on 2009

Summit County Real Estate Market Inventory - January 2009

Keeping a Close Eye on 2009

So far, prices of Summit County and Breckenridge real estate remain relatively stable, but rest assured, buying patterns are down and the abundance of inventory has created a buyer’s market for the first time since 2002.  The Breckenridge real estate market has experienced price reductions recently, but prices are merely coming down from 2007’s “ask any price you want” market.  Most of the reductions are taking the asking price down from an appreciating price without drop in value.  Unlike many markets around the country, Summit County’s price reductions are not significant enough to mention market despair (so far).  On average, since the beginning of ski season, Summit County has experienced downward listing prices of 5%-15% depending on property location and owner interest.  Last year’s asking prices were up 5%-15% until October, so overall the market has moved from softening to somewhat flat.

The softest sectors of the Summit County real estate market seen so far are: small, low-end condos in Breckenridge, Single Family homes slightly out of Breckenridge from $1.2 - $2.2 million, and River Run Village condos in Keystone.  There are a few strong holds however, ski-in / ski-out condos anywhere and real estate in Dillon is still selling well.

Foreclosures and short sales are the real estate rage around the country.  You can tell the nation is feeling the stress when Summit County Government is posting up to 50 properties (full ownership) up for auction.  This is a rare sight indeed and the number is expected to grow for 2009.  Roughly 40-50% of foreclosure properties actually make it to auction in Breckenridge and Summit County and finding the great deals is not always easy.

Looking into the Crystal Ball

Second home markets have consistently escaped much of the disparity on the nation’s real estate markets, but 2009 is poised be a slow year in the U.S. as well as Summit County and Breckenridge real estate.  The nation’s economy has not bottomed out yet and the trickle down effect of this massive event is now directly affecting Breckenridge.  Keith’s crystal ball is currently clouded, but it’s showing signs that this summer will be the new bottom of the market lasting for an unknown length of time.  I’m going to guess 6-12 months of this, but there are a lot of changes coming for the country. The next 12 months are likely to provide the true meaning of the situation Breckenridge real estate.  So far, so good, but the inventory is still growing slightly faster than buyers are buying.  If competition amongst sellers gets fierce, we will see true market devaluation this year.  However, interest rates in the last month have been fantastic and are rumored to drop again in the first quarter.  30-year loans are rumored to get to 4% or lower?! If this occurs, this will undoubtedly spark investor’s interests (including mine), and stimulate sales.  Just through small town chit chat, there already seems to be increased investor interest after the new year.  Recent Buyer Trend: In the last 2 months, 90% of my new clients are looking for a foreclosure, short sale, or a steal, particularly ski-in / ski-out.  There are a few desperate sellers out there (seldom with ski in / ski out) and buyers are sensing that.  If you look to the skies, the vultures are circling.

This entry was posted on Wednesday, January 28th, 2009 at 9:20 am and is filed under Market News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.